Artists' project grants

You have to include the total of your artists' project grants that is greater than your scholarship exemption in your income for the year on line 13010 of your Income Tax and Benefit Return.

If you received an artists' project grant, whether separately from or in addition to other scholarship income, that you used in producing a literary, dramatic, musical, or artistic work (other than a grant received for work completed as part of a business or employment), you may claim the scholarship exemption to reduce the total amount that must be included in your income as scholarship income.

The amount of exemption is the total of reasonable expenses you incurred in the year to fulfill the conditions of receiving each art production grant up to a maximum of, but not exceeding, the total amount of each grant that you received and included in calculating your income.

When determining your expenses, you cannot claim:

  • personal living expenses while at your usual place of residence
  • expenses for which you can be reimbursed
  • expenses that are otherwise deductible when you calculate your income for the year

Example 1

I received two T4A slips totalling $8,000 for the following:

  • $3,000 for a prize of achievement in the arts, and
  • $5,000 to produce a literary, dramatic, musical, or artistic work (referred to as an art production grant)

I incurred $2,000 in expenses to fulfill the conditions of receiving the art production grant.

Do I have to report the whole $8,000 on line 13010 of my income tax and benefit return?

No. If the expenses you incurred to fulfill the conditions of receiving the art production grant are eligible, you can subtract them from the total amount you received in 2021 (box 105 of your T4A slips).

You can calculate your income to report on line 13010 as follows:

Total income from the prize and art production grant ($3,000 + $5,000) $8,000
Minus the eligible expenses you incurred to fulfil the grant conditions (no deduction is available for the prize) 2,000
Minus the basic scholarship exemption ($500)
500
Income to report on line 13010 $5,500

Example 2

I received two T4A slips totalling $8,000 for two separate art production grants: one for $3,000 and another one for $5,000. I incurred eligible expenses of $3,300 and $100 to fulfil the conditions to receive the first and second grant, respectively.

Can I claim the whole amount of $3,400 as expenses against my income this year to be reported on line 13010?

No. You may deduct the expenses you incurred to fulfill the conditions of receiving each art production grant, but only up to the amount of that grant. Therefore, you can claim eligible expenses of only $3,000 (not $3,300) for the first grant.

You can calculate your income to report on line 13010 as follows:

Total income from both art production grants ($3,000 + $5,000) $8,000
Minus the eligible expenses to fulfil the conditions for the first grant (maximum $3,000) 3,000
Minus the eligible expenses to fulfil the conditions for the second grant 100
Minus the basic scholarship exemption ($500) 500
Income to report on line 13010 $4,400
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